Taipei [Taiwan], July 3 (ANI): Taiwan’s Ministry of Economic Affairs (MOEA) announced Wednesday it will launch a “thorough examination” of any proposed takeover of the Hsinchu-based tech firm Source Photonics Co., Ltd., amid rising concerns over Chinese efforts to acquire sensitive semiconductor technology, Focus Taiwan reported.
Suzhou Dongshan Precision Manufacturing Co., Ltd. (DSBJ), China’s largest printed circuit board manufacturer, has reportedly expressed interest in acquiring Source Photonics for approximately RMB 5.9 billion (around NT$24 billion). The potential deal has triggered scrutiny under Taiwan’s national security framework due to the critical nature of the technology involved.
The MOEA confirmed Wednesday it has not yet received a formal application from Source Photonics regarding the rumored buyout, but said it has already notified the company that any change in ownership structure involving Chinese capital would require regulatory approval.
Under Taiwan’s regulations, prior approval from the MOEA is mandatory for investments that involve Chinese funding or control. The ministry said it has been closely monitoring Source Photonics since 2016, when its top shareholders were first identified as Chinese capital. Last month, the MOEA formally requested updated information on the company’s ownership structure.
Should an application be filed, the MOEA said it plans to coordinate with the National Security Bureau (NSB), the Mainland Affairs Council (MAC), and relevant technology agencies to assess potential national security risks or impacts to Taiwan’s semiconductor and optoelectronics industries. If risks are identified, the MOEA has the authority to deny or revoke the investment permit.
Democratic Progressive Party (DPP) lawmaker Hsu Chih-chieh raised the alarm over the possibility of sensitive technology being transferred to China. He emphasized that Source Photonics is known to hold advanced 3-nanometer chip technology — a highly strategic capability in the global semiconductor race. Hsu urged the government to act with caution and suggested establishing a national list of critical technologies to prevent hostile acquisitions of key assets.
Focus Taiwan noted that the MOEA has been monitoring the company’s activities for years, mindful of the island’s position as a global leader in semiconductors and its vulnerability to technology transfer through acquisitions by Chinese state-linked entities.
The proposed deal underscores growing concerns in Taipei over Beijing’s persistent attempts to gain access to Taiwan’s cutting-edge semiconductor technologies, which are central to both economic competitiveness and national security. (ANI)
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